MSC (Not Rated). MSC ranked among the top 3 gainers for the day, with a 22.0 sen (5.5%) surge to RM4.20. Trading volume was elevated at 301.7k shares, roughly double the 30-day average. Chart-wise, the short-to-long-term trend is positive with the SMAs in a “Golden Crossover”. With yesterday’s bullish move, MSC’ has broken out of a month-long pause for breath. Similarly, the RSI has just hooked upwards into bullish territory flat-lining over the past month. These essentially signalled that MSC is poised to resume its year-long uptrend. From here, we expect the share price to retest the November high of RM4.49 (R1). Should this resistance level be taken out next, MSC would then have a clear path towards RM4.75 (R2) and RM5.00 (R3) next. Downside support is anchored at RM3.87 (S1), although a break below would constitute a major bearish trend reversal.

DUFU (Not Rated). DUFU surged 4.5 sen (6.29%) to close at RM0.76 on strong trading volume yesterday, staging a technical breakout from its ‘Symmetrical Triangle’ chart pattern. The immediate term outlook is looking encouraging given that the MACD has staged a bullish crossover, while uptick by RSI and Stochastic are suggesting buying interest is pilling up on the stock. With follow through buying interest, DUFU could look to climb further up towards RM0.80 (R1) and possibly RM0.88 (R2) further. Nonetheless, we advocate interested investors to approach the stock cautiously given the near overbought situation seen by the RSI/Stochastic, while we also observe that DUFU has a tendency to undergo a pullback whenever there is a strong run-up in share price (circled on chart). Any pullback towards RM0.735/RM0.715 (S1) would offer a good opportunity to accumulate, while noting that the next support level is found at RM0.665 (S2).

Source: Kenanga Research - 10 Jan 2017